Commodity Prices Slump as Dollar Strengthens and Supply Worries Ease

Copper prices are expected to trade lower due to a firm dollar and easing tightness in the market. Rising global exchange inventories have reduced supply worries, and LME cash contracts trading at a discount to three-month forwards indicate easing physical tightness or demand from the US.

The delay on import tariffs for refined copper by the US would also cool down premiums and prompt some liquidation. In addition, strong economic data from China ahead of the traditional peak consumption season is expected to provide support to prices.

MCX Copper September is likely to face a hurdle near Rs 1384-1388 level and move lower towards Rs 1360. If it falls below Rs 1360, it will weaken further towards Rs 1350.